How To Calculate Statutory Maternity Pay

Calculate your statutory maternity pay (SMP) entitlement based on your earnings and employment details.

Comprehensive Guide: How to Calculate Statutory Maternity Pay (SMP)

Statutory Maternity Pay (SMP) is a legal entitlement for eligible employees in the UK who take time off work to have a baby. Understanding how to calculate your SMP is crucial for financial planning during this important life event. This guide explains the eligibility criteria, calculation methods, and key considerations for SMP.

1. Eligibility Criteria for Statutory Maternity Pay

To qualify for SMP, you must meet the following conditions:

• Employment Status: You must be an employee (not self-employed or a worker).
• Continuous Employment: You must have worked for your employer continuously for at least 26 weeks up to the ‘qualifying week’ (the 15th week before the expected week of childbirth).
• Earnings Threshold: Your average weekly earnings must be at least £123 (before tax) in the 8 weeks up to and including the qualifying week (for the 2023/24 tax year).
• Notice Requirements: You must give your employer the correct notice (at least 28 days before you want your SMP to start) and proof of pregnancy if requested.

2. How Statutory Maternity Pay is Calculated

SMP is paid for up to 39 weeks. The calculation depends on your average weekly earnings:

1. First 6 weeks: You receive 90% of your average weekly earnings before tax.
2. Remaining 33 weeks: You receive either 90% of your average weekly earnings or £172.48 (for 2023/24), whichever is lower.

Earnings Range	First 6 Weeks	Weeks 7-39	Total SMP
£123 or less	Not eligible	Not eligible	£0
£123 – £172.48	90% of earnings	£172.48 or 90% (whichever is lower)	Varies
£172.49 – £500	90% of earnings	£172.48	£7,426.68
£500+	90% of earnings	£172.48	Varies (capped at 90% for first 6 weeks)

3. Key Dates and Timelines

The timing of your SMP is determined by several important dates:

• Qualifying Week: The 15th week before your expected week of childbirth. This is used to determine your eligibility and calculate your average earnings.
• Expected Week of Childbirth (EWC): The week your baby is due. Your employer will use this to work out when your SMP should start.
• Maternity Leave Start Date: You can choose to start your leave:
  • From the 11th week before your EWC, or
  • From the date of birth (if the baby is early)
• SMP Payment Start: SMP starts when your maternity leave begins, or from the day after your baby is born if that’s earlier.

4. How Employers Calculate Your Average Weekly Earnings

Your employer will calculate your average weekly earnings using:

1. The 8 weeks leading up to and including your qualifying week
2. Your gross earnings (before tax and National Insurance) from that period
3. The total earnings divided by 8 to get your average

Example: If you earned £4,800 over 8 weeks, your average would be £600 per week.

5. When You’re Not Eligible for SMP

If you don’t qualify for SMP, you might be eligible for:

• Maternity Allowance: If you’re employed but not eligible for SMP, or self-employed
• Universal Credit: If you’re on a low income
• Other benefits: Depending on your circumstances

Scenario	SMP Eligibility	Alternative Support
Earnings below £123/week	❌ Not eligible	Maternity Allowance
Less than 26 weeks employment	❌ Not eligible	Maternity Allowance
Self-employed	❌ Not eligible	Maternity Allowance
Recently changed jobs	✅ Maybe eligible (if 26 weeks with previous employer)	Check with employer

6. Tax and National Insurance on SMP

Important points about taxation:

• SMP is treated as earnings, so tax and National Insurance will be deducted
• It may affect your tax code and other benefits
• You’ll receive a P45 when your SMP ends if you don’t return to work

7. Returning to Work During Maternity Leave

You can work for up to 10 ‘keeping in touch’ (KIT) days during your maternity leave without losing your SMP for that week. These days are optional and must be agreed with your employer.

8. What Happens If Your Baby is Born Early or Late

If your baby arrives early:

• Your SMP starts the day after birth
• You must inform your employer as soon as possible

If your baby arrives late:

• Your SMP starts on your chosen date (no later than the day after birth)
• You can’t get SMP for more than 39 weeks, even if the baby is late

Frequently Asked Questions About SMP

Can I get SMP if I have two jobs?

You might be eligible for SMP from each employer if you meet the eligibility criteria for both jobs. Each employment is treated separately for SMP purposes.

What if I’m made redundant during pregnancy?

If you’re made redundant during pregnancy or maternity leave, you’re still entitled to SMP for the full 39 weeks if you meet the eligibility criteria at the time of redundancy.

Can I claim SMP and Maternity Allowance?

No, you can’t receive both SMP and Maternity Allowance at the same time. You’ll receive whichever you’re eligible for.

What if my average earnings fluctuate?

The calculation is based on your earnings during the 8-week qualifying period. If your earnings vary significantly, this period might not reflect your usual income.

Additional Resources

For official information and guidance:

• GOV.UK: Maternity Pay and Leave – Official government guidance on SMP
• Citizens Advice: Maternity and Paternity Rights – Comprehensive advice on workplace rights
• ACAS: Maternity Rights – Advisory service on employment rights